Leerink Partners reiterates Outperform rating on Aurinia stock after trial data

Published 30/06/2025, 18:58
Leerink Partners reiterates Outperform rating on Aurinia stock after trial data

Investing.com - Leerink Partners has reiterated an Outperform rating and $10.00 price target on Aurinia Pharmaceuticals (NASDAQ:AUPH), a company currently showing strong financial health according to InvestingPro metrics, following the company’s release of first-in-human data for its aritinercept (AUR200) treatment. The company stands out with a perfect Piotroski Score of 9, indicating excellent financial strength.

The Phase 1 single ascending dose trial showed that aritinercept, a recombinant IgG4 Fc fusion protein, was generally well-tolerated across all tested dose levels ranging from 5mg to 300mg. The treatment demonstrated a half-life of 6-8 days after a single dose, with pharmacodynamic effects supporting once-monthly dosing via subcutaneous injection. With a robust gross profit margin of nearly 80% and strong liquidity position, the company appears well-positioned to advance its clinical programs.

At day 28, the maximum immunoglobulin reductions with aritinercept appeared competitive compared to other anti-APRIL/BAFF assets in development, according to Leerink Partners. The firm noted that aritinercept’s profile appears similar to Vertex (NASDAQ:VRTX)’s povetacicept and Otsuka’s sibeprenlimab.

Aurinia plans to initiate clinical studies of aritinercept in at least two autoimmune diseases in the second half of 2025. The company has not provided specific details regarding the target indications, doses, or injection volumes due to competitive considerations.

Aurinia is generating positive cash flow from Lupkynis (voclosporin) sales and intends to advance aritinercept development independently, though Leerink Partners has not yet included aritinercept in its valuation model due to the early stage of development and unspecified indications.

In other recent news, Aurinia Pharmaceuticals reported first-quarter net product sales of $60.0 million for Lupkynis, slightly surpassing both Leerink’s and consensus estimates. The company has maintained its yearly guidance for 2025, projecting total net product sales between $240-250 million. Leerink Partners has reiterated an Outperform rating for Aurinia, with a price target of $10.00, finding the 4% quarterly growth in Lupkynis sales promising. Aurinia ended the first quarter with a net income of $23.3 million and held $312.9 million in cash, cash equivalents, restricted cash, and investments. The company also repurchased 5.8 million shares for $47.4 million during the quarter.

Additionally, Aurinia announced positive results from its Phase 1 study of aritinercept, a dual inhibitor targeting B cell-activating factor and proliferation-inducing ligand. The study involved 61 healthy subjects and demonstrated that aritinercept was well tolerated with no serious adverse events. Aurinia plans to initiate clinical studies of aritinercept in autoimmune diseases later this year. Leerink noted that the American College of Rheumatology’s updated lupus nephritis treatment guidelines may benefit Aurinia as they focus on educating rheumatologists about Lupkynis. The company is also anticipating Phase 1 data for AUR200, another treatment in development, later this quarter.

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